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China is facing a serious land resource mismatch problem, which will profoundly affect the acceleration of economic growth and technological innovation. Reform of the industrial land allocation system can solve the mismatch of land resources, and that also has an important impact on the promotion of economic and technological development. This paper selects the data of Chinese A-share listed companies in Shanghai and Shenzhen from 2007 to 2020 as the research sample, constructs a double machine learning model, and empirically investigates the impact of a new industrial land use policy on firms' green innovation behavior. The study shows that: (1) the new industrial land use policy significantly promotes firms' substantive and strategic green technological innovation, and the effect on substantive green technological innovation is greater than that on strategic green technological innovation. (2) The enhancement of R&D investment sustainability and the "talent pool" effect are important mechanisms through which the new industrial land use policy influences firms' substantive and strategic green technological innovation. Meanwhile, the new industrial land use policy is conducive to firms' green coinnovation. (3) There is heterogeneity in the effect of the new industrial land use policy, which can significantly promote green technological innovation of firms in the eastern region, while it does not play a significant role in the green innovation behavior of firms in the central and western regions. The above research results enrich the research in the field of industrial land and innovation, help to understand more comprehensively the mechanism of new industrial land affecting firms' green technological innovation, and provide policy insights for strengthening the application of industrial land allocation reform in firms' green innovation. [ABSTRACT FROM AUTHOR]

China's fast growing economy is inducing various technology dynamics. Much attention and resources are being paid to new energy technologies in China. These eight selected papers are a collection of academic studies on modeling and policy analysis of the diffusion of new energy technologies in China. These studies were all presented during the First International Workshop on 'Diffusion of New Energy Technologies in China,' held from 25-26 March 2011, in Shanghai, China. [ABSTRACT FROM AUTHOR]

This paper uses the data of China's A-share listed companies in Shanghai and Shenzhen stock markets from 2003 to 2014 and takes the pilot emission trading policy in 2007 for a quasinatural experiment to explore the role of the pilot emission trading policy in promoting enterprises' green technology innovation. The empirical research shows a Porter effect in the emission trading system in China. Specifically, first, the emission trading policy can significantly promote enterprises' green technology innovation in pilot areas. In addition, the incentive effect of emission trading policy on green technology innovation is significantly different due to the types of green patents. Second, the incentive effect of emission trading policy on enterprises' green technology innovation is different due to the nature and scale of enterprises. The incentive effect is greater in state-owned enterprises than in non-state-owned enterprises, and it is greater in large-scale enterprises than in small-scale enterprises. Finally, the incentive effect of emission trading policy on enterprises' green technology innovation has heterogeneity of regions. It has the greatest incentive effect in eastern region, followed by western region and then central region. [ABSTRACT FROM AUTHOR]

In the era of innovation dividends, whether investors, as the main participants in the capital market, can tolerate enterprise innovation activities is the key to whether the capital market can help enterprises innovate. This paper takes the listed companies of Shanghai and Shenzhen A-shares in China that disclosed quantitative performance forecasts from 2016 to 2021 as samples, obtains the market reaction of performance forecasts through the event study method and uses them as proxy variables of investors' short-term performance expectations, and uses multiple regression analysis to explore the impact of corporate R&D on investors' short-term performance expectations. The results are as follows: (1) corporate R&D investment significantly reduces investors' short-term performance expectations (that is, investors have a significant tolerance effect on enterprises with higher R&D investment); (2) the increase in the shareholding ratio of institutional investors weakens the tolerance effect; and (3) with the implementation of China's innovation-driven strategy, the tolerance effect of its capital market on enterprise R&D gradually increases, especially for high-tech companies, but has a low tolerance effect on state-owned companies' R&D risk. The results show that investors in China's capital market are not completely rational in their response to corporate R&D, and investors are willing to bear more short-term performance losses for high R&D investment, which is consistent with prospect theory. [ABSTRACT FROM AUTHOR]

Sci-tech and finance plays an increasingly important role and have become an important driving force in economic development. In China, the problem of insufficient financial support for sci-tech innovation is important to enterprises. According to the internal relationship between different stages of Sci-tech and the finance system, this paper is aimed at exploring the efficiency measurement method between sci-tech and finance systems. Firstly the multi-stage collaborative structure of sci-tech finance is built, where the system of sci-tech is divided into three stages including the R&D stage, transformation stage of sci-tech achievements and industrialization stage, and the financing channel is the input of the finance system into the sci-tech system at different stages. The measurement method of the multi-stage collaborative efficiency between sci-tech and finance systems is put forward by the framework of network DEA. Then, taking China as an example, we collect the information of 30 provinces and cities from 2009 to 2016 and measure the efficiency of each system and the collaborative efficiency of the both. The efficiency's spatial correlation is tested by means of Moran index. Finally, the influencing factors of the collaborative efficiency are analyzed based on the spatial econometric regression model, which considers the financing channels and human capital. To sum up, there are significant differences in the sci-tech finance collaborative efficiency among regions in China. Among them, the collaborative efficiency of Beijing, Shanghai and Jiangsu ranks in the top three. Comparing the different stages of the sci-tech system, the commercialization stage is a weak link in many regions of China. Human capital and financing channels of sci-tech finance have different degrees of positive impact on the sci-tech finance collaborative efficiency. Among them, human capital plays a greater role in promoting the sci-tech finance collaborative development. [ABSTRACT FROM AUTHOR]

City cluster is an effective platform for encouraging regionally coordinated development. Coordinated reduction of carbon emissions within city cluster via the spatial association network between cities can help coordinate the regional carbon emission management, realize sustainable development, and assist China in achieving the carbon peaking and carbon neutrality goals. This paper applies the improved gravity model and social network analysis (SNA) to the study of spatial correlation of carbon emissions in city clusters and analyzes the structural characteristics of the spatial correlation network of carbon emissions in the the Yangtze River Delta (YRD) city cluster in China and its influencing factors. The results demonstrate that: 1) the spatial association of carbon emissions in the YRD city cluster exhibits a typical and complex multi-threaded network structure. The network association number and density show an upward trend, indicating closer spatial association between cities, but their values remain generally low. Meanwhile, the network hierarchy and network efficiency show a downward trend but remain high. 2) The spatial association network of carbon emissions in the YRD city cluster shows an obvious 'core-edge' distribution pattern. The network is centered around Shanghai, Suzhou and Wuxi, all of which play the role of 'bridges', while cities such as Zhoushan, Ma'anshan, Tongling and other cities characterized by the remote location, single transportation mode or lower economic level are positioned at the edge of the network. 3) Geographic proximity, varying levels of economic development, different industrial structures, degrees of urbanization, levels of technological innovation, energy intensities and environmental regulation are important influencing factors on the spatial association of within the YRD city cluster. Finally, policy implications are provided from four aspects: government macro-control and market mechanism guidance, structural characteristics of the 'core-edge' network, reconfiguration and optimization of the spatial layout of the YRD city cluster, and the application of advanced technologies. [ABSTRACT FROM AUTHOR]

Sustained and stable external financing, affected by the financial environment, is a necessary condition to support the green technological innovation of enterprises. This paper focuses on the impact of bettering the financial environment of digital finance on enterprise green technological innovation, as well as the mediating role of financing costs and financial flexibility in this process. Using China's data on manufacturing enterprises listed in Shanghai and Shenzhen from 2011 to 2018, the hypotheses are tested. The result suggests the following: (a) digital finance effectively promotes enterprises to carry out green technological innovation, specifically, the coverage and depth of digital finance can promote enterprises' green technological innovation, but the degree of digitization has no significant impact; (b) digital finance improves the financial environment by making up the shortage of traditional financial system through reducing financing problems such as "financing difficulty," "matching difficulty," and "supervision difficulty," which make effective contributions to enterprise green technological innovation; (c) financing costs negatively mediate the relationship between digital finance and enterprise green technological innovation, while financial flexibility positively mediates the relationship. Overall, our findings shed light on the role digital finance plays in shaping corporate environmental behavior—and ultimately innovation in sustainability—in financing constraint setting. [ABSTRACT FROM AUTHOR]

Investing in human capital can assist in achieving technological innovations, while the spatial spillover effects of human capital on urban innovation in urban agglomeration are largely ignored. Using the panel data of 108 cities in China's Yangtze River Economic Belt (YREB) during 2011–2020, this paper explores the interactions between human capital and urban innovation with a two-way fixed effects Spatial Durbin Model framework, which incorporates the interpretation of spatial spillover effects. The results show that urban innovation in the YREB has spatial heterogeneity in the structure, which is reflected in its diffusion from the downstream cities on the eastern coast to the upstream cities in the western region. Then, the low-level human capital inhibits the development of local innovation, while intermediate and high-level human capital improves local innovation. Furthermore, the spatial spillover effect shows an opposite trend. The impact of human capital on urban innovation is not significant in the downstream cities, such as Shanghai and Nanjing. Finally, three policy directions are proposed to optimize the human capital structure of the YREB, which are, strengthening investment in human capital and technological innovation, enhancing the talent spillover effect, and improving basic education. [ABSTRACT FROM AUTHOR]

The pressure upon local governments to redeem their debt could affect government fiscal ability. It could consequently affect their fiscal policies on corporations, which might distort corporate innovation. Based on the data of Chinese Shanghai and Shenzhen A-share listed companies and the local government implicit short-term debt financed by local government financing vehicles (LGFVs) in 31 provinces, this paper shows that local government debt (LGD) negatively affects corporate R&D investment in China, thereby suggesting a strong crowding-out effect. The crowding-out effect is more pronounced when the firm is a non-state-owned enterprise (NSOE), the firm's size is small, the firm's age is young, or the firm is in the lower market competition. This paper provide evidence by interacting the terms that local government actions, such as consumption of fiscal resources, strengthening tax collection efforts, or consumption of credit resources, might partially account for the crowding-out effect. This study illustrates the innovation costs of local government debt. [ABSTRACT FROM AUTHOR]

The formulation of long-term step-by-step emission reduction plan is an important step for effective scientific emission reduction. This paper takes Shanghai as the research object, constructs PSO-LSTM model on the basis of STIRPAT model, and further constructs three dynamic policy scenarios combined with China's actual situation and makes short-, medium-, and long-term multivariate predictions for them. The study finds that only the improvement of energy consumption structure has a promotion effect on carbon emission reduction, and urbanization, industrial structure, technology level, population, and economic level all have an increasing effect, and secondly, the carbon emission reduction path of Shanghai basically achieves the core objective of steady decrease under the three scenarios. Secondly, under the three scenarios, Shanghai's carbon emission reduction path basically achieves the core objective of steady decline, but the decline in the GU scenario is more significant. It is recommended that Shanghai further adjusts its industrial structure, optimizes its energy consumption structure, promotes technological innovation and progress, and promotes the development of the circular economy model. [ABSTRACT FROM AUTHOR]

The Chinese government adheres to the innovation driven strategy and emphasizes that technological innovation is the strategic support for improving social productivity and comprehensive national strength. This paper discusses the mechanism of technological innovation and regional economic co-evolution, and constructs an index system to assess them based on the principles of synergy and systematics. The authors use a dynamic coupling model to study the law of the cooperative evolution of composite systems and geo-detector methods to reveal the main factors controlling the degree of coordination among them. The results show that the total factor productivity of China's high-tech industry showed a "W"-type trend of change from 2006 to 2016, and the other indices exhibited a volatile trend. The total factor productivity, technical efficiency, scale efficiency, pure technical efficiency, and technological progress increased by 37%, 13.3%, 3.9%, 9%, and 20.8%, respectively. There was a significant spatial difference in changes in total factor productivity, forming a core-edge spatial pattern with the middle and upper reaches of the Yangtze River as the center of concentration. Most of China's technological innovation and regional economic complex systems were in a state of interactive development from 2007 to 2016, except in the three northeastern provinces of Zhejiang, Shanghai, and the western part of the country. The degree of coupling of the other provinces showed an increasing trend, and the overall degree of coupling exhibited the spatial pattern of Central > Eastern > Western > Northeastern. The three most influential factors for the degree of coupling of China's provincial complex system were the gross domestic product, efficiency of technological innovation, and expenditure on research and development, whereas the three most important factors affecting the degree of coupling of complex systems were the efficiency of technological innovation, gross domestic product, and number of high-tech enterprises as well as research and development personnel, respectively, in the eastern, central, western, and northeastern regions. Finally, the paper puts forward the suggestions of regional innovation driven coordinated development, technology innovation and regional economic coordinated development, in order to provide reference for the high-quality economic development of developing countries. [ABSTRACT FROM AUTHOR]

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Corporate green innovation has played a crucial role in balancing profitability and environmental protection. The existing research on determinant factors of green innovation has its main defects in emphasizing excessively enterprise's formal institutional environment and neglecting the informal institutional environment, causing an incomplete understanding of the relationship between institutional environments and corporate green innovation. To bridge this gap, using a sample of Shanghai and Shenzhen A-share listed firms in manufacturing industry during the period of 2010–2016, we investigate how social trust, an important informal institutions, affects corporate green innovation. Our results show that social trust is positively associated with green innovation, remaining valid after applying endogenous and robustness tests. In addition, the positive relationship between social trust and green innovation is more prominent when the enterprise is non-state-owned or locates in a looser command-and-control (CAC) environmental regulations region. Further analysis shows that social trust boosts corporate green innovation via promoting knowledge sharing, decreasing financing constraints, and fulfilling more corporate social responsibility (CSR). This paper enriches the literature concerning social trust and green innovation and draws back more public attention on the role of informal institutions play in promoting green innovation. [ABSTRACT FROM AUTHOR]

The Yangtze River Delta urban agglomeration is the leading and demonstration area for the high-quality development of culture tourism (HDCT) in China. It is of great significance to study the spatiotemporal characteristics and impact mechanism of the HDCT for revealing the internal law of HDCT and promoting the collaborative innovation of culture tourism among cities. Based on the scientific construction of the evaluation system of HDCT, this paper made a quantitative analysis of 26 cities' HDCT by using coupling coordination degree model, Lisa spatiotemporal transition and spatial Durbin model (SDM). The results show that: The overall level of 26 cities' HDCT shows a fluctuating upward trend, and presents a "Z" pattern in space. More than 80% of the cities are at the medium and high level. Shanghai has obvious advantages in the primacy degree. There is a significant positive spatial autocorrelation among cities with high-quality of culture tourism development. The spatial clustering and proximity of the same kind are increasing, and the radiation effect is gradually obvious. The local spatial association patterns are mainly HH and LL agglomeration, and the characteristics of polarization are gradually prominent. The local spatial correlation structure of HDCT has strong stability, the transfer inertia between types is prominent, and the overall spatial evolution is lack of integration with obvious path dependence and lock-in effect. The spatiotemporal evolution of the HDCT is a complex process under the interaction of multiple factors, and there is a significant spatial spillover effect (0.256). The level of economic development, technological innovation, professional talent allocation are the three main factors. According to the dominant factor, it can be divided into economy stabilizing type, industry optimizing type, innovation driving type and traffic impacting type. These findings have implications for local governments and tourism management departments to achieve high-quality innovative development of cultural tourism. [ABSTRACT FROM AUTHOR]

Some types of government R&D incentives, such as subsidies and the High-and-New Technology Enterprise (HNTE) programme in China, are considered selective because they are given to few eligible firms. The selection process necessitates firm signalling and thus may influence R&D activities before the policy takes effect. This paper explores the innovation behaviour of firms in both the period of preparing to apply for the incentives (application period) and the period after obtaining the incentives (execution period). The empirical results show that subsidy programmes can effectively encourage firms to carry out substantive innovation, while HNTE programme stimulates deceptive innovation in the application period and suppresses innovation motivation in the execution period. This result implies that the HNTE programme fails, at least in the short run, to drive substantive innovation. Comparison of the two policies also shows that information gathering and inspection may reduce firm deviation. [ABSTRACT FROM AUTHOR]

Today rapidly growing economies depend more on the creation, acquisition, distribution, and use of knowledge. As such, strategies for enhancing research and innovation capabilities have come to occupy a more important position in many developing nations, including China. Already the leading production center, and often seen as China's economic locomotive, Shanghai is striving aggressively to retain its national preeminence and has launched concerted efforts to increase local innovative output. The primary purpose of this paper is to understand how state-led efforts have fared in promoting technology innovation. By situating the city in the national and global context, the paper shows that Shanghai has gained a substantial lead in developing an innovation environment with extensive global linkages and leading research institutions. Recent efforts in building up the research and innovation capacity of the enterprise sector have begun to show progress. Although firms are enthusiastic about its future as an innovation center, Shanghai continues to face challenges of inadequate protection of intellectual property, lack of venture capital investment, and the tightening supply of highly qualified knowledge workers. [ABSTRACT FROM AUTHOR]

Conventional wisdom holds that the high competitiveness of the newspapers in Beijing and Shanghai is due to fast economic development in these cities. This research, however, finds that the degrees of newspaper competitiveness in Beijing and Shanghai do not relate positively to their GDP growth rates. While Shanghai's GDP outranks Beijing, the newspaper business in Beijing outgrows Shanghai. This paper argues that under the current Chinese management system, economic impact upon newspapers' development is limited. Only after the government management over media is reformed, can economic factors become a decisive force behind newspapers' innovation and advertising competitiveness. [ABSTRACT FROM AUTHOR]

• Lead market factors are often not primarily country-specific, but rather regionally established • Regional demand, technological capabilities and regulation constitute regional lead markets • Shanghai displays a high lead market potential for waste management innovations The success of environmental innovations and sustainability transitions critically depends on market formations and diffusion processes. As of today, the geography of transitions literature provides suitable terms and case study evidence that these processes are highly regional phenomena. However, pertinent conceptual frameworks such as the multi-level perspective, technological innovation systems, or the somewhat less prominent lead market concept lack an explicit regional perspective. This paper develops a regionalized framework ('regional lead markets (RLM)') in order to provide a more appropriate conceptual lens for analyses of regional transition and innovation diffusion processes. We argue that regional lead markets are determined by regulatory advantages, demand advantages and technological advantages. A regional lead market adopts a later successful innovation at an early stage and gains competitive advantage in the respective industry, driving national and international diffusion. We demonstrate the concept's applicability by providing illustrative evidence on Shanghai's lead market potential for waste management. [ABSTRACT FROM AUTHOR]

While the significant role of external environments in shaping the implementation of building information modeling (BIM) as a systemic innovation in construction projects has been increasingly acknowledged, little is known about how heterogeneous projects concretely interact with each other to facilitate or inhibit the advancement of BIM implementation practices in the "conservative" construction industry. Drawing on a social contagion perspective, this study explores how the contagion effects through participant- and attribute-based ties among construction projects differently impact project-level BIM implementation practices via the interproject learning and competition processes. The proposed propositions are tested using an industry-wide longitudinal data set of BIM-based construction projects within the construction industry in Shanghai, China. After controlling for the effects of related organizational and project characteristics, the results show that, compared with the attribute-based contagion effects, which are primarily related to the interproject competition process, the participant-based contagion effects primarily related to the interproject learning process generally play more substantial roles in impacting project-level BIM implementation practices within interproject networks. The results further provide evidence that the participant-based contagion through the ties of project owners is more substantial than that through the ties of project contractors, and that the magnitude of the attribute-based contagion varies in different sizes and types of projects. As an exploratory effort of using longitudinal data to empirically characterize how project-level BIM implementation practices are contagious through different types of interproject ties from a social contagion perspective, this study contributes to a deepened understanding of how heterogeneous construction projects interact with each other through interproject learning and competition processes to facilitate or inhibit the advancement of innovative practices in the industry. The findings reinforce the need to regard BIM implementation practices in construction projects as complexly socialized activities and provide insights for policymakers and practitioners in developing strategies to facilitate the in-depth implementations of BIM and related innovations in the "conservative" project-based construction industry. [ABSTRACT FROM AUTHOR]

The synergetic reduction of CO2 and PM2.5 emissions has received much attention in China in recent years. A comprehensive evaluation of the synergy between CO2 emission reduction (CER) and PM2.5 emission reduction (PER) would provide valuable information for developing synergetic control policies. Thus, we constructed a comprehensive CO2-PM2.5-emission-reduction index system and evaluated the synergy between CER and PER, using the coupling coordination degree (CCD) and relative development degree (RDD) model in China's 329 cities from 2003 to 2017. The spatiotemporal characteristics of the CCD were analyzed on the national, regional, and urban scales. Furthermore, we used the spatial autocorrelation analysis, kernel density estimation, and Dagum Gini coefficient to investigate the spatial autocorrelation, evolutionary characteristics, and regional differences of the CCD. The results indicate that (1) the synergy between CO2 and PM2.5 emissions' reductions showed an upward trend, and the lowest CCD values occurred in NW and Shanghai on the regional and urban scales, respectively; (2) the CCD showed obvious spatial clustering characteristics, with 75% of the cities located in the "High–High" or "Low–Low" clustering zones in the Moran scatter plots in 2017; (3) the polarization of CCD in SC, MYR, and SW showed intensified trends; (4) and the hypervariable density was the largest contributor to the overall difference in the CCD. Our findings suggest that more attention should be paid to the top-level design of the policies, technological innovation, and cross-regional or intercity cooperation. [ABSTRACT FROM AUTHOR]

Wang, X. and Qi, Y., 2020. The impact of institutional distance on innovation performance of OFDI Enterprises: Comparison of coastal and inland regions in China. In: Gong, D.; Zhang, M., and Liu, R. (eds.), Advances in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 106, pp. 166–170. Coconut Creek (Florida), ISSN 0749-0208. Outward Foreign Direct Investment (OFDI) has a certain impact on enterprises' innovation performance through the reverse technology spillover effect. However, China's OFDI is not unevenly distributed, and the OFDI of the coastal economically developed regions has the highest proportion. The large institutional distance between the home country and the host country also affects the effect of OFDI reverse technology spillover on enterprises' innovation performance. This paper uses the moderated multiple regression model to analyze the moderate effects of institutional distance on the relationship between OFDI reverse technology spillover and enterprises' innovation performance, using the data of Shanghai and Shenzhen A-share listed companies over the period of 2008–17. The results show that OFDI reverse technology spillover has a significantly positive effect on innovation performance and that the effect of coastal regions in China is stronger than that of inland regions; formal institutional distance (FID) and informal institutional distance negatively moderate the impact of reverse technology spillover on innovation performance of OFDI enterprises in inland regions, whereas the FID positively moderates the relationship between reverse technology spillover on innovation performance of OFDI enterprises in coastal regions. [ABSTRACT FROM AUTHOR]

High-quality urbanization is the core for realizing human well-beings, for which reason investigating how the relationship evolves between urbanization and eco-environment is of crucial importance. Differing from the rationale of revealing spatial spillover effects using traditional tests, we consider spatial network characteristics to enrich the notion of local coupling and telecoupling from a relational perspective. First, we adopt coupling coordination degree model (CCDM) and decoupling model (DM) to calculate the urbanization and eco-environment coupling coordination degree (UECCD) and the decoupling index (DI) in 30 provinces and municipalities of China from 2008 to 2017. Second, we use gravity model to construct urbanization and eco-environment coupling coordination network (UECCN), in which provinces are nodes and spatial connection relationships of UECCD are edges between nodes. Third, we introduce social network analysis (SNA) to reveal spatial network characteristics of UECCN without using local spatiotemporal heterogeneity. Finally, we employ spatial econometric model to reveal factors that influence urbanization and eco-environment coupling effect. The major findings and conclusions of this study are summarized as follows. (1) The main subclasses of UECCD and DI are basically uncoordinated patterns with eco-environment lagging and weak decoupling, respectively. (2) Only two spatial agglomeration types of UECCD exist, the high-high (H-H) clustering in Shanghai and the low-low (L-L) clustering in western China, whereas no significant spatial agglomeration effect is observed among most provinces. (3) The distribution characteristics of UECCN are sparse in western China and dense in eastern China, and the spatial correlation strength of UECCN improves. (4) Technological innovation plays a critical role in promoting UECCD, while the total population, per capita disposable income, coupling network structure, and environmental regulations exert significant impact on UECCD. Collectively, we propose to prioritize governance provinces with low UECCD in western China as well as adequately utilize the positive externalities of key node provinces in eastern China. Equally importantly, we suggest that it is also critical to fully exert a driving force of technological innovation on improving the UECCD by promoting renewable energy utilization. [ABSTRACT FROM AUTHOR]

This paper aims to describe the regional development of high-tech industry through the spatial overlap of regional innovation capability and high- tech industrial zones. Mapping the regional distribution of high-tech industrial zones and innovation capability, the differentiation between them was displayed. The most developed high-tech industry provinces were Guangdong and Jiangsu, but the most innovation capability provincial units were Beijing and Shanghai. Using a dissimilarity analysis about compositions of innovation capability and high-tech industry, it indicated that the high-tech industry was promoted mainly by the techniques outside the areas other than the knowledge in the developed provinces. Generally, technique copies had more importance for the high-tech industry than original innovation in China. [ABSTRACT FROM AUTHOR]

Summary: How does the structure of government‐funded service networks affect the process of service innovation? We have conducted a comparative analysis of the structure and processes of collaborative innovation of 2 government‐funded community‐based elderly service networks in Shanghai. We have found that in consistent with the literature, a network that has a network administrative organization structure is better able to manage the process of service innovation in a way that balances the need to achieve government policy goals on the one hand and the imperative to facilitate bottom‐up citizen participation on the other. Surprisingly, contrary to what prior studies have suggested, we have found that a network in which a lead organization plays a dominant role, despite its more centralized process of service innovation, is often able to deliver a variety of high‐quality and low‐cost services addressing citizens' needs. With the leadership provided by the network lead organization and its close affiliation with the street‐office government, the network has been able to solicit government support. Such a hierarchical yet responsive state‐society relation has emerged as a result of the coalescence of a corporatist state legacy and an increasing pressure for local governments to seek citizens' support in service delivery. [ABSTRACT FROM AUTHOR]

Due to the quick advancement of science and technology, the services sector which has a high content of knowledge and technology has experienced globally expeditious development in the past decade. Development in general and the growth of Knowledge Intensive Business Services (KIBS) such as Information and Communication Technology services (ICT services) in particular are at the core of the major trends that are restructuring the economic landscape of not only German but also Chinese economies. In Germany, in the new era of service economy, more emphases are put on KIBS instead of the traditional giant clusters of steel manufacturing and auto manufacturing. Especially in Bavaria, high technology clusters are prospering. The ICT services in Bavaria accounts for 40% of all software companies in Germany. A lot of ICT services clusters can be found, including IT Speicher, FIWM, BICC-NET, etc. Similar cases can be found in Shanghai, where a number of government driving as well as market pulling ICT services cluster are also coming into being. Previous empirical evidence shows an asymmetric bipolarity in the location behavior of KIBS. There is a general predominance of low concentration due to equal diffusion of these services in many regions, and a high concentration in some regions located at the top of the spatial hierarchy, particularly capital cities. The current exploratory research, drawing upon cluster theory and network theory, aims at discovering the cluster features both from the perspective of the company executives in the cluster. Using the data collected through interviews and questionnaire surveys from company managers, incorporated with current theoretical framework and, through integration and analysis, important features of the cluster such as network mechanism are calculated both in Bavaria and Shanghai. We check the supply side as well as the demand side of the reasons why clusters are formulated in the first place, and they both have a positive effect on the network mechanism of the cluster. The network mechanism has a positive effect on innovation performance of the ICT service companies. The reasons are also discussed. Suggestions are provided for policy making about the KIBS cluster forming for both regions and the cooperation in these fields, especially in terms of service outsourcing relationship. Valuable implications for deciding the location for a KIBS company on the firm level are also provided. [ABSTRACT FROM AUTHOR]